Research on the compensation mechanism in public hospitals practicing the zero price margin for drugs / 中华医院管理杂志

ABSTRACT

The paper analyzed the compensation mechanism applied in public hospitals in different localities in China,which are currently experimenting with the zero price margin for drugs.It also introduced the revenue variations resulting from this practice.It is discovered that public hospitals can hardly make their ends meet with merely governmental financial input,and that lowered income of doctors and price distortion arc evident in those experimental hospitals,with little progress in overcoming the subsidization of medical services with drug sales.The authors recommended a comprehensive reform,the mechanism of diversified health input,change of internal incentive mechanism within the hospital,improvement in the healthcare service pricing mechanism,and exploration of new operation mechanisms for public hospitals.